Notwithstanding the recessionary trends in the economy during the last fiscal, the Orissa government has been able to achieve surplus in its revenue account in 2009-10.
This is for the fifth year in a row that the Naveen Patnaik led BJD government has attained revenue surplus although the state plan size has gone up significantly during this period.
In 2009-10 (provisional), the state has achieved a revenue surplus of Rs 1073 crore compared to Rs 3034 crore in 2008-09. This is against revenue deficit projection of Rs 2369 crore in the state budget for 2009-10. Orissa had achieved revenue surplus of Rs 481 crore for the first time in 2005-06 after a gap of 22 years. Higher collection of tax and non-tax revenue and less than the budgeted revenue expenditure during the fiscal have contributed to the surplus in revenue account, sources said.
“Moderate growth in expenditure and no substantial decline in the share in the Central taxes have helped to maintain surplus in the revenue account”, a senior official of the state finance department said. While the tax revenue at Rs 17497 crore in 2009-10 was 2.63 percent higher than the budgeted amount of Rs 17,049 crore, the non-tax revenue exceeded the budget amount by 28.13 percent to reach Rs 2873 crore. The total receipts including the non-debt capital receipts stood at 26,418 crore which was 98.6 percent of the budgeted amount of Rs 26,793 crore. However, lower overall and plan expenditure continue to be areas of concern for the state government. Sources said, the overall expenditure was 87.55 percent and the plan expenditure was 88.74 percent of the targeted amount during the last fiscal, calling for urgency to increase the capacity absorption in the field of expenditure.
“Since the state plan size is increasing every year, we need more manpower to improve spending”, a senior official said. However, the fiscal deficit increased to Rs 2297.2 crore compared to Rs 891.24 crore in 2008-09. The state budget for 2009-10 projected a deficit of Rs 6004 crore. Owing to better cash flow management, the state didn’t resort to market borrowing during the last fiscal even as the mobilisation from the small savings increased by Rs 584 crore during the fiscal. Though the budget projected small savings mobilisation at Rs 104.35 crore for 2009-10, the actual figure was Rs 610.35 crore from this source. Renewed interest in small savings instruments by the people is said to the reason for higher mobilisation of funds from National Small Savings Fund (NSSF). “Overall we have been able to withstand the impact of recession though there is scope for further effort to maintain the growth momentum”, the official added.